Tesco chief executive Sir Terry Leahy has announced he will step down next year after 14 years at the helm of the supermarket giant.
Leahy, one of Britain’s most successful businessmen, said he felt his work at the company was “almost done” after turning the company into the UK’s largest retailer and a major international player.
Leahy, 54, began working with the group in 1979 and held a number of marketing and commercial positions before being appointed chief executive in 1997.
When he took over the role of CEO, he said his aim was to make Tesco the biggest grocery chain in Britain and to build long-term growth by expanding internationally and offering a wide range of services and non-food products.
He explained: “When I became chief executive, I had a plan to build Tesco around its customers. I wanted to develop a purpose and values that could sustain Tesco through its challenges and encourage and grow future leaders.”
“It has taken 14 years but that strategy has become a firm reality now.”
Leahy, who earned £5.2million last year after helping Tesco achieve annual profits of £3.4 billion, added that he will focus on “private investment ” after he leaves Tesco but will retain a large shareholding in the firm.
Tesco confirmed that international and IT director Philip Clarke will replace Sir Leahy as chief executive in March 2011.
Clarke, who has driven Tesco’s expansion in Europe and Asia, said he was “honoured and delighted” to succeed him.
The former Tesco store buyer, marketer and store manager will become only the sixth man to run Tesco since the company was started in the 1920s.
